A simple, modified volume expansion method, or inclined tube method, is compared to the pressure difference method for determining gas holdup in an airlift bioreactor. The modified volume expansion method could be used for all pneumatic bioreactors where fluid fluctuation is vigorous and visual observation of the continuous phase rise is difficult. The overall gas holdup data measured using the inclined tube method are shown to be very close to overall gas holdup determined using a gamma ray density monitor system. However, the overall gas holdup measured by the pressure difference method is found to be significantly different, This difference is due to energy dissipation in the External Loop Airlift Bioreactor (ELAB) used in this study, which causes the pressure difference method to be incorrect.